I am relocating back home. I am trying to transfer my tax paid salary saving to a joint ICICI account in which My mother is primary account holder and I am secondary. I will be using money transfering service like World First or Transferwise to send money from USD to INR. These services convert the USD into INR and then deposit it.

Will this kind of deposit raise any questions by India tax department?

How can this be solved by using third party services rather than bank related transfer services.

1 Answer 1


If you have been living outside India for some time, you are an NRI and so should not be having an ordinary savings account in India, whether individually or jointly. NRIs are required to convert their accounts into NRO accounts when they change from Resident to NonResident status, though this rule is widely ignored.

Now, if you are transferring legitimate money (meaning what you have in your bank accounts abroad, that is, money left over after you have paid appropriate taxes on your income and spending on living expenses etc), then that money is not taxable income to you in India when you transfer it to India: you have already paid taxes on it abroad. Transfer it into your own account (preferably a legitimate NRE or NRO account which you can continue to hold for some time after you relocate to India) using a standard bank transfer service like the ones you mentioned or even ICICI Bank's Money2India service and no questions will be asked. Use a third-party service e.g. via friends "My sister-in-law is going to the US so why don't you give her the $30000 you are wanting to send to India and I will give your mother Rs 19.35 lakhs cash" or Hawala methods (which essentially are the same except that the middlemen are not known to you) to get that money to India, and questions will certainly be asked by ICICI Bank as well as the Income Tax Authority of India when your mother takes that bagful of cash to the Bank to deposit it your bank.

In short, do it right and by the book and there is no hassle whatsoever. Try finagling to get around a non-existent problem and you will get in trouble of your own making.

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